[Video] Should You Tap Your 401(k) to Pay Off Debt?

Chris Ladd

If you’ve been contributing to your employer-sponsored 401(k) for years now, you likely have a significant amount saved toward retirement. But if you find yourself in a considerable amount of debt, tapping into that savings account may be tempting. Before you do, familiarize yourself with both the short- and long-term effects of this decision. Then, speak with your financial advisor to be sure you’re making the right move.

  1. https://www.irs.gov/retirement-plans/401k-plan-hardship-distributions-consider-the-consequences
  2. https://www.irs.gov/retirement-plans/retirement-plans-faqs-regarding-loans

This content is developed from sources believed to be providing accurate information, and provided by Twenty Over Ten. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security.

By Chris Ladd

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